New Jersey American Water Rate Filing Seeks Recovery for $868 Million in System Upgrades
September 15 2017 - 03:20PM
Business Wire
New Jersey American Water has filed a petition with the New
Jersey Board of Public Utilities (BPU) for new rates seeking
recovery of the significant investment the company has made into
its water and wastewater infrastructure since its last rate
adjustment in 2015.
“In less than three years, we have invested more than $868
million in infrastructure upgrades, including over 1 million feet
of water main, to ensure continued water quality, service
reliability and fire protection for the more than 2.7 million
people who depend on us every day,” said Robert G. MacLean,
president of New Jersey American Water. “Not only are these
investments critical to the public’s health and safety, but they
also support the economic health of the communities we serve. This
level of investment contributes to the creation of close to 14,000
jobs across the state.”
Some of the company’s critical infrastructure projects included
in the rate request are as follows:
- Expansion of the Oak Glen Water
Treatment Facility to serve the needs of the company’s Monmouth
County service area.
- Flood protection project at the
Raritan-Millstone Water Treatment Facility to ensure the continued
sustainability of the water supply for more than 1 million people
in seven counties in Central New Jersey.
- Construction of an iron removal
facility in Toms River, Ocean County, as well as iron removal
upgrades to other systems for improved water quality and service
for customers.
- Replacement of several aging, critical,
large-diameter transmission mains in the Coastal region.
- Conversion from chlorine gas to an
on-site sodium hypochlorite generation system at the Delaware River
Regional Water Treatment Plant to improve safety.
- Needed system improvements to the
Jumping Brook, Swimming River, Delaware River, Canoe Brook and
Raritan-Millstone Water Treatment Plants.
- Replacement or upgrades to dozens of
wells, pumping stations and other critical facilities serving
customers in service areas throughout the state.
- Sewer system upgrades throughout the
company’s statewide service areas including sewer mains, lift
stations and other infrastructure in Ocean City, Lakewood and
Haddonfield.
In addition to these major projects, New Jersey American Water’s
investment into replacing or rehabilitating more than 200 miles of
aging water mains is also included in this rate request. The
company renewed aging water mains on a 90- to 100-year cycle, which
achieves the level of investment specified by the state of New
Jersey’s newly approved Water Quality and Accountability Act.
“According to the latest report card issued by the American
Society of Civil Engineers earlier this year, the nation’s water
infrastructure was graded a ‘D’ and the wastewater infrastructure
was graded a ‘D-plus.’ As the provider of water and/or wastewater
services to nearly one in three people in the state, New Jersey
American Water is committed to making needed investments to
proactively upgrade infrastructure to ensure reliable service,”
said MacLean.
MacLean added that New Jersey American Water’s rates are based
on the actual cost of providing water and wastewater service. “To
help mitigate rate increases for customers, we work very hard to
control our costs and operate as efficiently as possible,” he
said.
If approved as requested, the water bill for the average
residential customer using 6,000 gallons of water a month would
increase approximately 36 cents per day. The average residential
wastewater bill would increase approximately 20 cents per day. Even
with these increases, the cost of high-quality, reliable, 24-hour
water and wastewater service would continue to be among the lowest
household utility bills.
Rates will remain unchanged until this request undergoes
extensive public scrutiny by the BPU, the New Jersey Division of
Rate Counsel, and the Office of Administrative Law. This vetting
will include numerous interrogatories, public hearings and
evidentiary hearings. This process, based on prior requests, can
take a minimum of nine months. To increase transparency of the
process, the company’s petition and its associated exhibits are
being posted to the Company’s website, www.newjerseyamwater.com,
under Customer Service, Your Water Rates.
New Jersey American Water is seeking a total annual revenue
increase of approximately $129.3 million. The increased rates
proposed in the rate petition are a request only. The New Jersey
Board of Public Utilities will make the final decision regarding
the actual increase. Once a final decision has been made, customers
will receive information on the new rates in the mail and on the
company’s website.
New Jersey American Water, a subsidiary of American Water, is
the largest investor-owned water utility in the state, providing
high-quality and reliable water and/or wastewater services to
approximately 2.7 million people. More information can be found at
www.newjerseyamwater.com. With a history dating back to 1886,
American Water (NYSE: AWK) is the largest and most geographically
diverse publicly traded U.S. water and wastewater utility company.
The company employs 6,800 dedicated professionals who provide
regulated and market-based drinking water, wastewater and other
related services to an estimated 15 million people in 47 states and
Ontario, Canada. More information can be found by visiting
www.amwater.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170915005845/en/
New Jersey American WaterDenise Venuti FreeDirector of
Communications and External
Affairs856-782-2316denise.free@amwater.com
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